The Minnesota State Colleges and Universities Friends Action Network is a grassroots network of faculty, students, staff, alumni and community members committed to building public support for the Minnesota State Colleges and Universities system's annual legislative requests.

Friday, February 26, 2010

A lot of legislative activity on the bonding bill occurred early this week. On Sunday, conference committee members met late into the evening to try to wrap up the bill. Conferees finalized the language Monday morning and sent the bill to the floor Monday evening, where it passed both the House and Senate. However, Gov. Tim Pawlenty had sent a letter to legislators prior to the debate on the floor informing lawmakers that he would veto the entire bill rather than use line-item vetoes.

Legislative leadership decided to hold the bill and not send it to the governor in order to trim it down to the governor’s requested $725 million and produce a bill he will sign. The conference committee report and the governor’s bonding recommendations are approximately $300 million apart. House Speaker Margaret Anderson Kelliher, DFL-Minneapolis, said, "I think it will allow for maybe a little cooling-off period here in the next 24 to 48 hours."

Now that the bonding bill has been sent back to the Senate, a capital investment working group has begun further negotiations on the bill, and the governor and legislative leadership have been meeting.

During the working group discussions, Sen. Sandy Pappas, DFL-St. Paul, chair of the Higher Education committee, said the House and Senate respect the Minnesota State Colleges and Universities bonding process and that the colleges and universities play a vital role in the state's economy. Other members of the working group said the system is a model for getting shovels in the ground quickly.

As a reminder, the conference committee report includes $305.9 million (including user financing) for the Minnesota State Colleges and Universities system, of which $52 million is for repair and replacement, also referred to as HEAPR. Find a link to the conference committee report here. We will continue to keep you updated as negotiations continue over the weekend.

After Gov. Pawlenty released his supplemental budget last week, lawmakers have been grappling with how best to resolve the $1.2 billion state budget deficit. You will recall the governor proposed a reduction of $10.5 million to the Minnesota State Colleges and Universities system. As reported last week, the state can cut $46.6 million from higher education and still meet the federal “maintenance of efforts” requirement on receiving the federal stimulus funding. The governor took the rest of the higher education cut from the University of Minnesota at $36.1 million, which aligns the current budgets of both higher education systems with their 2006 funding levels.

The House Higher Education and Workforce Development Finance and Policy Division this week discussed the University of Minnesota’s budget. President Robert Bruininks told committee members the state has had a proud tradition of supporting higher education, but state support is declining. If this is the new norm, he said, higher education will have to be defined differently in Minnesota.

The Minnesota State Colleges and Universities system is scheduled to speak to this committee about the system's budget Tues., March 2. Also that day, we anticipate the release of the February economic forecast, which will tell lawmakers and the governor whether the $1.2 billion budget deficit forecast in November is still on target and will set the stage for the supplemental budget process this session.

Contract ratification bill moves through committee process

The annual contract ratification bill, the bill that ratifies labor agreements and compensation plans worked on since the prior session, has cleared another hurdle this week, this time in the Senate. On Wednesday, the Senate State and Local Government Operations and Oversight committee passed SF 2386. The bill includes plans for Minnesota State College Faculty or MSCF; the Minnesota State University Association of Administrative and Service Faculty or MSUAASF; the American Federation of State, County and Municipal Employees or ASCFME, the Minnesota Association of Professional Employees or MAPE; the Middle Management Association or MMA; the Minnesota State Colleges and Universities Administrators; the Commissioner’s Plan; and the Managerial Plan. As reported last week, the bill is working its way through the committee process in the House and will be heard next in the Finance Committee.

Senate votes to override GAMC bill

On the Senate floor this week, senators were successful in overriding the governor's veto of the General Assistance Medical Care bill by a vote of 45-21. General Assistance Medical Care covers adults with yearly incomes of less than $8,000, including many with chronic health problems, chemical addictions and mental illness. The program was eliminated by Gov. Pawlenty last year through executive actions. The bill is an attempt to restore funding to the program, which is due to end April 1.

House Speaker Margaret Anderson Kelliher, DFL-Minneapolis, said legislative leaders will spend the weekend working with the governor’s office to find a compromise, and said a signed bill is preferable to an override situation. However, she said that if negotiations fail to show progress by Monday, Democrats may attempt an override vote on the bill.

Jobs bill passes U.S. Senate, House to consider measure

The U.S. Senate's $15 billion jobs package ran into immediate opposition from the House of Representatives after it passed in the Senate by a larger-than-expected 70-28 bipartisan vote. Although House Democratic leaders indicated they would like to quickly enact a jobs bill to show the public they are working on the issue, House leaders as late this week had not decided how to proceed on the measure.

Tracking students to employment

There has been a long debate over the privacy of student data, and it’s now heading to the federal level. Should states be able to track if and where students are employed after graduation? The Obama administration is saying yes. The president’s education plan pushes for more accountability in higher education through data. This includes tracking where students end up and if they have jobs after pursuing higher education degrees. Former President George W. Bush proposed having a national database that tracked students from elementary school to employment. Obama’s plan is different because it would allow individual states to collect the data. Many in the research community believe access to this data would help track the records of students and institutions and lend a greater understanding of how students end up in a particular field. The U.S. Department of Education is researching how to collect this data while complying with federal privacy laws.

Here's What's Happening at the Capitol:

This schedule shows all meetings that we are aware of at the time of publication that may have an impact on the system. This schedule may change. Please watch the House and Senate schedules posted on the Legislature's web site.

10:30 AMHouse Bioscience and Workforce Development Policy and Oversight DivisionRoom: 200 State Office Building Chair: Rep. Tim Mahoney Agenda: HF3079 (Hortman) Permitting efficiency provided, and environmental reviewprovisions modified.HF3205 (Mahoney) Preference created for community banks and credit unions forthe state's general revenue account, state depository accounts required to be held in community banks or credit unions, and a study required of possible further use of community banks and credit unions by the state and municipalities.HF2839 (Bunn) Minnesota entrepreneur virtual assistance network authorized,and money appropriated.HF2849 (Norton) Minnesota and Wisconsin small business start-ups comparativestudy of state laws provided.HF2750 (Davnie) Small business investment tax credit provided.HF37 (Mullery) Research credit extended to individual income tax, portion of credit made refundable, and money appropriated.HFXXXX (Downey) Fast track small business formation and registrationHFXXXX (Rosenthal) Research and development tax creditPresentation by the Small Business Caucus

8:30 AMHouse State and Local Government Operations Reform, Technology and ElectionsRoom: 200 State Office Building Chair: Rep. Gene Pelowski Agenda: (Thissen) Minneapolis Employees Retirement Fund; administrative functions transferred to the Public Employees Retirement Association, consolidation account created within the Public Employees Retirement Association, and money appropriated.HF2557 (Kahn) State Webmaster position established, and state chief information officer required to develop standards for enhanced public access to state electronic records.Bills will be heard that were approved at the Local Government Division meeting on 3/1/2010.

The University of Minnesota discussed their budget with members of the House Higher Education and Workforce Development Finance and Policy Division committee yesterday afternoon. President Bruininks told committee members that the state has always had a proud tradition of supporting higher education, however that state support is declining. He said if this is the new norm, higher education will have to be defined differently in Minnesota.

President Bruininks also said the University has downsized its workforce and reduced operating costs due to the recent budget cuts and unallotments higher education has received. He told the committee that further cuts would jeopardize the University’s mission. The Minnesota State Colleges and Universities is scheduled to speak to this committee about the system's budget Tuesday, March 2.

On the House floor yesterday, members passed a bill by a vote of 126-5 that would move the primary election date from September to the second Tuesday in August to meet a federal mandate. The federal Military and Overseas Voter Empowerment Act passed in Oct. 2009, requires at least a 45-day period for absentee ballots to be returned and counted for primaries and elections, the previous law was 30 days. In 2008, almost 400,000 military and overseas absentee voters did not have their ballots counted due to lack of time.

On the Senate floor, senators were successful in overriding the governor's veto of the GAMC bill by a vote of 45-21. The bill now heads to the House, where a two-thirds majority is needed for an override. General Assistance Medical Care covers adults with yearly incomes of less than $8,000, including many with chronic health problems, chemical addictions and mental illness. The bill is an attempt to reshape the General Assistance Medical Care program, which is due to end April 1. Sen. Linda Berglin, DFL-Minneapolis, said the Legislature's approach will cost the state an average of $457 per person per month; however, under the legislation, more people would be covered which would cost more.

And in the House K-12 Education Policy and Oversight Committee, lawmakers approved two bills that would create alternative licensure for nontraditional teachers such as Teach for America teachers. Sponsored by Rep. Linda Slocum, DFL-Richfield, HF 3074 would repeal the current alternative teacher licensure law, and allow the Board of Teaching to adopt rules establishing a two-year limited teaching license and a pathway to full licensure for candidates. The bill was sent to the House K-12 Education Finance Division.

The other bill, HF 3093, sponsored by Rep. Carlos Mariani, DFL-St. Paul, would direct the Board of Teaching to approve qualified programs that enable a two-year license under legislative authority. The change would target districts or charter schools where there is a teacher shortage, a demonstrated achievement gap or where existing teaching staff does not reflect the racial or cultural student population. Language in the bill calls for a preliminary report in 2012 and a final report in 2014 by the Board of Teaching regarding the program's efficacy. This bill was sent to the House floor.

10:30 AMHouse Bioscience and Workforce Development Policy and Oversight DivisionRoom: 200 State Office Building Chair: Rep. Tim Mahoney Bill(s) AddedAgenda: HF3079 (Hortman) Permitting efficiency provided, and environmental reviewprovisions modified.HF3205 (Mahoney) Preference created for community banks and credit unions forthe state's general revenue account, state depository accounts required to be held in community banks or credit unions, and a study required of possible further use of community banks and credit unions by the state and municipalities.HF2839 (Bunn) Minnesota entrepreneur virtual assistance network authorized,and money appropriated.HF2849 (Norton) Minnesota and Wisconsin small business start-ups comparativestudy of state laws provided.HF2750 (Davnie) Small business investment tax credit provided.HF37 (Mullery) Research credit extended to individual income tax, portion of credit made refundable, and money appropriated.HFXXXX (Downey) Fast track small business formation and registrationHFXXXX (Rosenthal) Research and development tax creditPresentation by the Small Business Caucus

1:00 PM House Higher Education and Workforce Development Finance and Policy DivisionRoom: 5 State Office Building Chair: Rep. Tom Rukavina Agenda: Minnesota State Colleges and Universities budget hearingWednesday, March 3

8:30 AMHouse State and Local Government Operations Reform, Technology and ElectionsRoom: 200 State Office Building Chair: Rep. Gene Pelowski Agenda: (Thissen) Minneapolis Employees Retirement Fund; administrative functions transferred to the Public Employees Retirement Association, consolidation account created within the Public Employees Retirement Association, and money appropriated.HF2557 (Kahn) State Webmaster position established, and state chief information officer required to develop standards for enhanced public access to state electronic records.Bills will be heard that were approved at the Local Government Division meeting on 3/1/2010.

Thursday, February 25, 2010

After lawmakers sent the bonding bill back to the Senate Tuesday, a capital investment working group met yesterday to begin further negotiations on the bill. This open meeting was followed by a meeting in the governor's office. The final bill and the governor are approximately $300 million apart. Legislative leaders and the governor are expected to meet again this morning.

The Senate is expected to reconsider the bill on the floor today so that lawmakers have time to refine the bill. Legislative leaders said they hope to complete the bill next week.

During the working group discussions, Sen. Sandy Pappas, DFL-St. Paul, Chair of the Higher Education committee said the House and Senate respect the Minnesota State Colleges and Universities system's bonding process and the colleges and universities play a vital role in the state's economy. Other members of the working group said the system is a model for getting shovels in the ground quickly.

The Senate State and Local Government Operations and Oversight committee passed SF 2386 yesterday. The bill ratifies labor agreements and compensation plans including MSUAASF, MSCF, MAPE, AFSCME, Commissioner Plan, MMA and system administrators. In the House, the bill is working its way through the committee process and will be heard next in the Finance Committee.

8:30 AM televised liveHouse State and Local Government Operations Reform, Technology and ElectionsRoom: 200 State Office Building Chair: Rep. Gene Pelowski Agenda: HF2899 (Pelowski) Data practices and open meetings law violations provided an administrative remedy, civil penalties provided, and money appropriated.HF440 (Eken) Executive officer, judge, or legislator required to be elected by a majority of the votes cast at the general election for the office, and constitutional amendment proposed.

Wednesday, February 24, 2010

As reported yesterday afternoon, lawmakers held back the bonding bill in order to try and reach a compromise. House Speaker Margaret Anderson Kelliher, DFL-Minneapolis, said legislative rules allow the speaker to return the House file to the Senate, because no one has signed the bill. Legislators have until Thursday to reconsider the bill. Lawmakers can then send the bill back to conference committee, otherwise it heads to the governor.

The House K-12 Education Policy and Oversight committee discussed teaching proposals in Minnesota's Race to the Top application in a hearing yesterday. Dept. of Education Commissioner Alice Seagren told committee members that the attorney general has certified that the state’s Race to the Top application for $330 million in federal grants is not in conflict with state law. Some committee members however had a different opinion.

Committee Chair, Rep. Carlos Mariani, DFL-St. Paul, said that state statute precedes grant proposals, and as state legislators, it’s important to pay attention to legislators' allegiance and ownership over Minnesota law.

Also meeting yesterday was the House Higher Education and Workforce Development Finance and Policy Division to learn more about the governor's recommended cuts to workforce and economic development. Committee members learned that Gov. Tim Pawlenty’s supplemental budget plan includes $10.3 million in cuts to the Department of Employment and Economic Development, or DEED. Combined with unallotments made last year, the governor’s plan equates to a 4.8 percent cut to the agency’s budget.

The impact of the cuts would affect organizations and programs that receive funding through DEED grants, including the Extended Employment Program and the Job Skills Partnership Program.

Today at the Capitol

8:30 AMHouse K-12 Education Policy and OversightRoom: Basement State Office Building Chair: Rep. Carlos Mariani Agenda: HF2751 (Morgan) Students who do not pass the reading and language arts GRAD allowed to retake the test in paper-and-pencil format.HF3043 (Kalin) Computer-adaptive assessments provided for general education students.HF3069 (Kath) Board of Teaching directed to incorporate professional reflection and growth in best teaching practices into its renewal requirements for a continuing teaching license.

8:30 AMHouse State and Local Government Operations Reform, Technology and ElectionsRoom: 200 State Office Building Chair: Rep. Gene Pelowski Agenda: HF2899 (Pelowski) Data practices and open meetings law violations provided an administrative remedy, civil penalties provided, and money appropriated.HF440 (Eken) Executive officer, judge, or legislator required to be elected by a majority of the votes cast at the general election for the office, and constitutional amendment proposed.

Tuesday, February 23, 2010

In a surprise move by legislative leadership, lawmakers did not deliver the bonding bill to the governor, but rather the bill will be returned to the Senate after a request from Capital Investment chairs Rep. Alice Hausman, DFL-St. Paul, and Sen. Keith Langseth, DFL-Glyndon.

At a press conference this afternoon House Speaker Margaret Anderson Kelliher, DFL-Minneapolis, said, "I think it will allow, for, maybe, a little cooling off period here in the next 24-48 hours." Speaker Kelliher said legislative rules allow the speaker to return the House file to the Senate, because no one has signed the bill.

Yesterday was all about bonding at the Capitol. The capital investment conference committee wrapped things up yesterday morning and then the bill moved to the floor in both bodies last night. The House passed the bill by a vote of 85-46 and then the Senate passed the bill at approximately 9:30 p.m. by a vote of 47-19. Included in the bill is $305.9 million (including user financing) for the Minnesota State Colleges and Universities. You can find the detail on the attached side-by-side spreadsheet.

Supporters of the bill said the legislation would create more than 20,000 jobs in Minnesota. However, Gov. Pawlenty has already said that he will veto the entire bill once it reaches his desk.

10:30 AMHouse Bioscience and Workforce Development Policy and Oversight DivisionRoom: 200 State Office Building Chair: Rep. Tim Mahoney Agenda: Continued discussion of the Office of the Legislative Auditor report: Workforce Programs

8:30 AMHouse K-12 Education Policy and OversightRoom: Basement State Office Building Chair: Rep. Carlos Mariani Agenda: HF2751 (Morgan) Students who do not pass the reading and language arts GRAD allowed to retake the test in paper-and-pencil format.HF3043 (Kalin) Computer-adaptive assessments provided for general education students.HF3069 (Kath) Board of Teaching directed to incorporate professional reflection and growth in best teaching practices into its renewal requirements for a continuing teaching license.

Monday, February 22, 2010

The bonding conference committee met until 1:30 this morning. Conferees will meet again at 9 a.m. today to finish up. The bill is expected to be on the House and Senate floors today (see schedule below). We will send out the details as soon as they finish.

Today at the Capitol

The bonding conference committee will meet again this morning at 9:00 in room 123 of the Capitol (it will also be televised and webcast live).

10:30 AMHouse Bioscience and Workforce Development Policy and Oversight DivisionRoom: 200 State Office Building Chair: Rep. Tim Mahoney Agenda: Continued discussion of the Office of the Legislative Auditor report: Workforce Programs

8:30 AMHouse K-12 Education Policy and OversightRoom: Basement State Office Building Chair: Rep. Carlos Mariani Agenda: HF2751 (Morgan) Students who do not pass the reading and language arts GRAD allowed to retake the test in paper-and-pencil format.HF3043 (Kalin) Computer-adaptive assessments provided for general education students.HF3069 (Kath) Board of Teaching directed to incorporate professional reflection and growth in best teaching practices into its renewal requirements for a continuing teaching license.

Friday, February 19, 2010

With high unemployment rates, more students have gone back to college. This has placed a higher demand on the financial aid system; the state grant program is now facing a $41.6 million shortfall. This means that next year’s students will receive less money to attend college. Meredith Fergus, of the Office of Higher Education, presented the information to the House Higher Education Committee Thursday. She said that students will receive $150 to $1000 less in their state grant award next fall. The Office of Higher Education chose to award students the full amount of state grants this school year and reduce awards in the 2010-2011 school year. Recall that the governor also had a projected cut of $2.3 million to the state grant program when he released his budget on Monday. The committee took no action.

Please note that most Senate hearings for next week have been removed from the schedule by the body. It is anticipated that there will be long Senate floor sessions, a potential conflict for committee hearings. We will notify you if anything changes. Monday, February 22

10:30 AMHouse Bioscience and Workforce Development Policy and Oversight DivisionRoom: 200 State Office Building Chair: Rep. Tim Mahoney Agenda: Continued discussion of the Office of the Legislative Auditorreport: Workforce Programs

Thursday, February 18, 2010

The House State and Local Government Committee took up the bill on labor agreements and contract ratifications, HF 2758. Bill author, Rep. Leon Lillie, DFL- North St. Paul, shared that this bill ratifies all of the labor contracts and plans that were worked on since the 2009 session, including the Minnesota State College Faculty (MSCF), the Minnesota State University Association of Administrative and Service Faculty (MSUAAF), the American Federation of State, County and Municipal Employees (ASCFME), the Minnesota Association of Professional Employees (MAPE), the Middle Management Association, the MnSCU Administrators, the Commissioner’s Plan and the Managerial Plan. The committee passed the bill and referred it to the House Finance Committee.

The House Bioscience and Workforce Development Committee heard the newly released report on Workforce programs. The report stated that workforce program clients generally achieved better job and wage outcomes than similar people who filed for unemployment insurance but did not participate in workforce programs. Specific to the Minnesota State Colleges and Universities, the report recommended that the System should “identify academic programs that help laid off workers and assist its colleges to determine whether to offer more such programs.” Following the House hearing, the Senate also heard this report in the Business, Industry and Jobs Committee. A full copy of the report, and summary, can be found here.

Today at the Capitol

Today, the House Higher Education Committee will take testimony on the governor’s budget proposal from the Minnesota State Colleges and Universities.

1:00 PM House Higher Education and Work Force Development Policy and Finance DivisionRoom: 5 State Office BuildingChair: Rep. Tom RukavinaAgenda: Fiscal condition of state financial aid programsGovernor’s higher education budget recommendationDavid Metzen, Director of the Office of Higher EducationResponse to the governor’s budget proposal from MnSCU and U of M

Wednesday, February 17, 2010

Conferees were named for the capital investment bill. The Senate members will be Senators Keith Langseth (DFL- Glyndon), David Tomassoni (DFL- Chisholm), Sandy Pappas (DFL- St. Paul), Paul Koering (R- Fort Ripley) and Ann Lynch (DFL-Rochester). The House members are Representatives Alice Hausman (DFL- St. Paul), Jean Wagenius (DFL- Minneapolis), Loren Solberg (DFL-Grand Rapids), Bev Scalze (DFL-Little Canada) and Larry Howes (R-Walker). No committee dates have been announced yet, however, it is expected that the members will begin work soon. Stay tuned.

Today at the Capitol:

The bill on labor agreements and the ratification of compensation plans will be before the House State and Local Government Committee this morning. The Workforce Development report by the Office of the Legislative Auditor will be heard today in two committees; first, at the House Bioscience and Workforce Development Committee and then in the Senate at the Business, Industry and Jobs Committee.

1:00 PM House Higher Education and Work Force Development Policy and Finance DivisionRoom: 5 State Office BuildingChair: Rep. Tom RukavinaAgenda: Fiscal condition of state financial aid programsGovernor’s higher education budget recommendationDavid Metzen, Director of the Office of Higher EducationResponse to the governor’s budget proposal from MnSCU and U of M

Tuesday, February 16, 2010

It was a busy day at the Capitol yesterday. Gov. Tim Pawlenty released his supplemental budget which contained a $10.46 million cut to the Minnesota State Colleges and Universities. Recall that the state could cut $46 million from higher education and still meet the federal “maintenance of effort” requirement on receiving the federal stimulus funding. The governor took the rest of the higher education cut from the University of Minnesota at $36.1 million. The governor’s decision aligns the current budgets of the higher education systems with 2006 funding levels. A summary of the governor's budget can be found here, the actual budget recommendation can be found here.

Members of the Minnesota House met in floor session for an hour-and-a-half before recessing to attend committees, and coming back in the evening for three more hours of debate before passing the House bonding bill. The bill passed by a vote of 92-37. Rep. Alice Hausman pointed out that the $1.09 billion legislation contained $343 million for the Minnesota State Colleges and Universities, or $245 million when factoring out the user financing. It also provides the System with $60 million for repairs and replacement (HEAPR). She said the amount to the Minnesota State Colleges and Universities was higher “because of what is happening with in the economy, because of what is happening with enrollment.” She assured members that within the Minnesota State Colleges and Universities list, “we really funded projects all over the state.” As you may recall, the capital investment bill was passed by the Senate Feb. 9. Conference committee members should be named soon. These members will be tasked with creating a final bill to send back to the House and Senate.

The Senate also met in session and approved a measure to move up Minnesota’s election primary by one month to comply with federal standards. The former primary date was Sept. 14. The new legislation would push this up to Aug. 10. The House has not yet taken action on this bill.

Today at the Capitol:

The Senate Higher Education committee will be meeting today to discuss the current state of financial aid in Minnesota. After this, the committee will take testimony on the governor’s proposed supplemental budget. Both of these items will be reported on in tomorrow’s daily update.

Monday, February 15, 2010

While most people are off for the Presidents’ Day holiday, lawmakers are back in St. Paul and ready to begin work. It is rounding up to be a busy day. House legislators will meet at 1 p.m. to pass the House version of the bonding bill. You may recall that the Senate already passed its bill. The next step will be forming a conference committee to iron out the differences between both versions of the bill. Conferees should be named soon after the bill is passed, please watch for an announcement.

Gov. Tim Pawlenty is also expected to release his version of the supplemental budget today. With a projected $1.2 billion shortfall in the state budget, it is expected that the governor will solve the deficit with cuts to state programs. Under the federal stimulus package, American Recovery and Reinvestment Act, each state was required to follow a “maintenance of effort” spending proposal in education. This means that if a state chose to receive federal education funding, it could not dip below the 2006 funding levels in education. To abide by this rule, Minnesota can only cut $46.6 million more out of the higher education funding. This cut could be split evenly between the University of Minnesota and the Minnesota State Colleges and Universities. If the cut is distributed in accordance with 2006 funding levels, the Minnesota State Colleges and Universities would receive a $10.5 million cut while the University of Minnesota would get reduced by 36.1 million. Stay tuned.

Friday, February 12, 2010

Gov. Tim Pawlenty delivered his final State of the State address yesterday, where he offered advice to the legislators running for governor, including, “Don’t kiss an eelpout on the lips, even if the locals say it’s for good luck.”

Pawlenty's address centered around the theme of taxes and jobs, and he urged the Legislature to pass his Jobs Creation Bill that has six parts; a 20 percent reduction in the corporate tax rate; a 20 percent exclusion from taxation for small businesses; an angel investment tax credit; a supercharged research and development tax credit; a capital gains exclusion for qualified investments; and incentives for companies to invest in Minnesota small businesses. Pawlenty also proposed a constitutional amendment that would require future spending to not exceed current revenues.

Related to education, he said that the most important school-related factor in determining how a student will perform is the quality and preparedness of their teachers. He asked teacher unions to support the “Teaching Transformation Act,” that he said will dramatically improve teacher quality, training and accountability for results.

The governor also said that he will release his budget recommendations Monday to resolve the $1.2 billion budget deficit for the current biennium. He said it will include painful spending reductions; however, he said he will protect programs for the military, veterans, core public safety functions and K-12 classrooms. The House Ways and Means and Finance committees are scheduled to hear the governor’s supplemental budget Monday morning.

Following the governor's address, the House Ways and Means committee took up the bonding bill and passed it to the floor where it is scheduled for debate Monday at 1 p.m.

The committee did amend the bill to require Minnesota Management and Budget to notify the Legislature "on the amount and percentage of each agency's capital appropriation that is used to pay for the capital costs of staff directly attributable to the capital project or projects funded with state general obligation bond proceeds."